A report from Bain & Company highlighted pressures on the global industry to spend a cash pile that has grown at 12 per cent a year for the past five years and now tops $US633 billion.

“In the coming years, this, along with heavy competition and the looming threat of an eventual economic downturn will require PE funds to create portfolio company value from the inside out — through better leadership and execution — or accept middling returns,” said Hugh MacArthur, a partner with Bain and author of the report.